What USPS’s Rate Increase Means to Commercial Shippers

Nov 19, 2013 12:42 PM  By

Pricing Changes Summary

  • New Zone 9 for “Freely Associated States” (Micronesia, Marshall Islands and Palau)
  • $.20 Surcharge for not having an Intelligent Mail Parcel Barcode (IMpb)
  • Average Changes: Retail + 3%, Base + 2.9 % and Plus +.6%
  • CPP Weight and Zone decreased. – 1%
  • CPP Flat Rate pricing increased + 15%
  • 10:30 am Delivery option (add $5.00)

Priority Mail Express (Formerly Express Mail)

Detail for 10Lbs and under

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Priority Mail

  • Reduced the threshold to participate in the CPP (Plus) pricing to 50,000 units per year. (was 150K for Cubic and 75K for weight/zone)
  • Many of the rates were reduced for Cubic and weight and zone products and only slightly increased for Flat Rate options.
  • This should make this popular segment even more competitive considering the anticipated 4.9% Ground increases from the private carriers (UPS, FedEx)

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Parcel Select

  • Most commonly used by private consolidators like: FedEx SmartPost, UPS SurePost, Newgistics or OSM
  • Average increase is 5.9%
  • It is notable that there is a significantly higher increase for deeper entry.
  • Destination entry for:
    • DDU + 8%,
    • DSCF + 5.6%
    • DNDC + 5.1%
  • Non Destination Entry + 5.9%
  • Most commonly used by private consolidators like FedEx SmartPost <1Lb , UPS SurePost <1Lb, UPS Mail Innovations,  Newgistics, OSM to name a few
  • Average increase is 10.1%
  • It is notable that there is a significantly higher increase for deeper entry.
  • Joe Ralstin

    Great article! Being a private consolidator, I agree with the “look around for options” mentality. There are other options in your area, you just have to find them or have them find you. http://www.c3ps.us

  • marc zazeela

    Indeed, Joe Ralstin. Instead of complaining, get creative and find a better way.